Correlation Between Minmetals Capital and Citic Guoan
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By analyzing existing cross correlation between Minmetals Capital Co and Citic Guoan Wine, you can compare the effects of market volatilities on Minmetals Capital and Citic Guoan and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Minmetals Capital with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Citic Guoan.
Diversification Opportunities for Minmetals Capital and Citic Guoan
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Minmetals and Citic is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine and Minmetals Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Minmetals Capital Co are associated (or correlated) with Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Citic Guoan go up and down completely randomly.
Pair Corralation between Minmetals Capital and Citic Guoan
Assuming the 90 days trading horizon Minmetals Capital Co is expected to under-perform the Citic Guoan. In addition to that, Minmetals Capital is 1.21 times more volatile than Citic Guoan Wine. It trades about -0.15 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.16 per unit of volatility. If you would invest 568.00 in Citic Guoan Wine on September 3, 2024 and sell it today you would earn a total of 51.00 from holding Citic Guoan Wine or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minmetals Capital Co vs. Citic Guoan Wine
Performance |
| Timeline |
| Minmetals Capital |
| Citic Guoan Wine |
Minmetals Capital and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and Citic Guoan
The main advantage of trading using opposite Minmetals Capital and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Citic Guoan can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Minmetals Capital vs. Beijing Jiaman Dress | Minmetals Capital vs. Tianjin Capital Environmental | Minmetals Capital vs. Sinocat Environmental Technology | Minmetals Capital vs. Beijing Mainstreets Investment |
| Citic Guoan vs. Luolai Home Textile | Citic Guoan vs. Shandong Homey Aquatic | Citic Guoan vs. Fiberhome Telecommunication Technologies | Citic Guoan vs. Xiamen Goldenhome Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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